Capita leading contender to run road pricing schemes

The company which runs the London congestion charge has emerged as a leading contender to run road pricing schemes around the country.

Capita said it is talks with local authorities about setting up pay-as-you-drive networks. Ten areas in England have applied for funds to establish road pricing systems including Manchester, which will today unveil plans for its scheme.

Capita, which administers the £8 a day congestion charge in central London, is also preparing a submission for a demonstration project due to take place in the spring.

The government yesterday invited proposals for trials, but stressed that drivers will not be expected to pay and the demonstrations will take place over a short period of time.

A Capita spokeswoman said: "Capita has extensive experience both administering the London congestion charge scheme and supporting local government. We are therefore well placed to support local authorities in trialing and implementing integrated transport solutions, including road user pricing.

"We are actively working with a number of existing and new clients to support and develop their local transport strategies and infrastructure." Capita runs dozens of public sector contracts and is one of the largest outsourcing firms in the UK.

The 10 areas that have applied for funding to explore road pricing are: Greater Manchester; west Midlands, incorporating Birmingham, Wolverhampton and Coventry; east Midlands, in a joint bid by Leicester, Derby and Nottingham; Tyne and Wear; Durham; Bristol; Reading; Cambridgeshire; Shrewsbury and Norwich.

Manchester's road pricing plan will not be implemented until 2012 at the earliest and local leaders are adamant that it will not go ahead without a £3bn investment in public transport.

The transport secretary, Douglas Alexander, this week denied claims that the local schemes are a "Trojan horse" for a national road pricing network, saying that the government will make a decision on a nationwide project once it has gauged the success of the smaller pay-as-you-drive schemes.